Goldcorp board nixes Glamis offer
Canadian miner board still favors Wheaton deal
By Leslie Wines, MarketWatch
Last Update: 1:22 PM ET Jan. 21, 2005
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NEW YORK (MarketWatch) - Canadian miner Goldcorp's board Friday urged shareholders to reject a $3.4 billion all-stock hostile takeover bid by the U.S.-firm Glamis Gold, ripping the deal for being "inadequate."
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Toronto-based Goldcorp's board also delayed a shareholder vote on the company's friendly $2.2 billion all-stock takeover offer for Wheaton River Minerals to give investors more time to ponder the two possible transactions.
The meeting, originally slated for Jan. 31, has been rescheduled for Feb. 10.
The Goldcorp (GG: news, chart, profile) board's statement also recommended that shareholders vote in favor of purchasing Wheaton River (WHT: news, chart, profile) which is based in Vancouver.
However, two GoldCorp board members abstained from the vote. Canadian press reports have suggested the board may be divided over which transaction to pursue.
The board statement defended the preference for the Wheaton River transaction on the grounds that deal would be highly accretive and the resulting combination would have a lower risk profile than a merger of Glamis and Goldcorp. .
Glamis (GLG: news, chart, profile) , of Reno, Nev., announced its bid for Goldcorp on Dec. 16. That was ten days after Goldcorp and Wheaton River agreed to a merger.
On Jan. 17, Glamis launched a dissident shareholder fight to thwart Goldcorp's effort to buy Wheaton Minerals.
In early afternoon U.S. trading, Goldcorp stock was up 37 cents, or 2.6 percent, higher at $14.70, while Glamis shares were lifted almost 3 percent, trading up 48 cents at $16.75.
Wheaton River stock advanced 7 cents, or 2.2 percent, to $3
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